Africa’s top brands vie for market growth

Kenya’s Senator Lager has emerged as the fastest-growing brand in Africa.

The beer brand from East African Breweries Ltd has grown by an impressive 88 per cent over the last year, according to a new ranking by an independent consultancy, Brand Finance.

The survey of 150 strongest and most valuable firms in the continent sought to establish the effect of the coronavirus pandemic on brand growth.

It established that Africa’s top firms would lose at least 12 per cent in brand value during the pandemic period.

The pandemic would see the brands suffer a drop of Sh6.8 trillion compared to the previous valuation of January 1, 2020.

“Lack of connectedness between nations across the continent means that brand growth is being stifled and they are unable to flourish beyond their home markets,” said Brand Finance Managing Director Jeremy Sampson.

“This does pose, however, a great opportunity for African brands to develop in a market ripe for consolidation.”

Brand Finance is a chartered accountancy firm regulated by the Institute of Chartered Accountants in England and Wales, and publishes almost 100 reports yearly, a brief about the firm says.

South African brands continued to dominate the ranking, claiming 87 spots and accounting for 76 per cent of total brand value.

Nigerian brands came second in a ranking that saw 19 African countries represented, with Kenya represented by five brands.

Valuable sectors

The region’s most valuable sectors were claimed by banking, telecoms and insurance respectively.

In the telecoms sector, Kenya’s Safaricom emerged the third most valuable telecom company with a brand value of Sh104 billion, behind South Africa’s Vodacom and MTN respectively.

Kenya’s Equity Bank and KCB occupied position 69 and 70 in the ranking.

“Many brands you may never have heard of only operate in their home country. This fragmentation, partly a result of Africa’s historic colonial past and domestic barriers to entry, means growth is stifled. No truly Pan-African brands exist,” said Mr Sampson.

“To some major global players Africa is the big opportunity, admittedly off a low base, with its burgeoning population, and increasing spending power.”

Brand Finance Africa Associate Walter Serem said the ranking was good news for the continent’s businesses.

“This goes to reinforce the fact that brand is the most valuable business asset and firms should invest more in brand building,” he said.